Lending to Pakistan has jumped since 9/11, is that because of external political pressure?
No, the increase in lending to Pakistan since 9/11 is primarily a reflection of Pakistan's progress in a number of keys areas of reform. Prior to 9/11, Pakistan was already nearly two years into its reform program and showing signs of an economic recovery, following a long period of slow growth. The progress was there in narrower current account and budget deficits, lower inflation, and higher foreign exchange reserves, which insulate a country against financial shocks. So the signs were there well before 9/11.
